Consultation document: proposed revisions to Ozone-depleting Substances Regulations, chapter 2

2.0 Summary of Key Proposed Revisions to the Ozone-depleting Substances Regulations, 1998

Following consultations in 2008, Environment Canada evaluated the comments received on the proposed options put forward. The following sections describe the status of the proposed revisions.

2.1 Production and Consumption of HCFCs in Canada

2.1.1 Existing Regulations

The Montreal Protocol requires Parties to make scheduled reductions at an aggregate (Canada-wide) level, and provides individual countries with the flexibility to achieve the reductions in ways that account for the special circumstances applicable in each country. 

The following table compares the existing reduction requirements set by the ODSR 1998 and the new reduction obligations as agreed by Parties in Decision XIX/6 of the Parties under the Montreal Protocol.

By 2015:

Previous phase-out schedule in Current Regulations: reduce consumption by 90%

Accelerated phase-out schedule (revisions to be made): reduce consumption by 90%  (no change) and reduce production by 90%

By 2020:

Previous phase-out schedule in Current Regulations: reduce consumption by 99.5%, remaining 0.5% for servicing of existing equipment

Accelerated phase-out schedule (revisions to be made): reduce consumption and production by 100% (exemption of 0.5% provided for the servicing of existing equipment using HCFCs up to 2030)

By 2030:

Previous phase-out schedule in Current Regulations: reduce consumption by 100%

Accelerated phase-out schedule (revisions to be made): not applicable

In addition to these consumption reductions, Canada committed to a freeze in HCFC production starting January 1, 2004. Apart from this freeze, reduction steps in production are not currently required under the ODSR 1998.  Currently, HCFC production in Canada is much lower than the calculated level of production allowed under the Montreal Protocol.

2.1.2 Purpose of Proposed Regulatory Revisions

The purpose of the proposed revisions is to adjust the reduction schedule for the consumption of HCFCs and to introduce a phase-out schedule for production to reflect the accelerated phase-out schedule agreed to by Canada and other nations in Decision XIX/6 of the Parties to the Montreal Protocol.

2.1.3 Proposed Regulatory Controls

Annex 1 to this document outlines the draft proposal regarding provisions related to the changes in consumption and manufacturing allowances for HCFCs.

2.2 Permitting and Reporting Provisions for the Import, Manufacture and Export of all HFCs

HFCs were introduced on to the global market as replacements for ODS, such as CFCs, halons and HCFCs, that are being phased out under the Montreal Protocol. They are used primarily as coolants in refrigeration and air conditioning equipment in homes, other buildings and industrial operations, for air-conditioning in vehicles, and to a lesser extent, as blowing agents in the manufacture of insulating foams, aerosol propellants, fire suppression agents, and cleaning solvents. There is no HFC production in Canada. HFCs have no ozone-depletion properties, but have high global warming potential (GWP).

The consumption and emissions of HFCs as ODS substitutes are projected to increase substantially in the coming decades in response to controls placed on ODSs under the Montreal Protocol, making HFCs an emerging concern for having significant impact on near-term climate change.

2.2.1 Existing Regulations

No provisions currently exist in the ODSR 1998 or other legislation that require the permitting and reporting of the import, manufacture and export of HFCs.

2.2.2 Purpose of Proposed Regulatory Controls

In line with the provisions of the NA Proposal, the purpose of these proposed controls is to create a permitting and reporting system to monitor quantities of HFCs that are imported, manufactured and exported. A permitting and reporting system will ensure no person is allowed to import HFCs into Canada, export HFCs from Canada or manufacture HFCs without a permit. Furthermore, this requirement will also provide manufacture, import and export data on HFCs in Canada to allow for more accurate projections of HFC imports, use and emissions to inform the establishment of potential future controls.

A permitting and reporting system would also assist in addressing the issue of illicit traffic as large amounts of material imported into Canada have been found to be labelled as containing (uncontrolled) HFCs but contain (controlled) ODS.

2.2.3 Proposed Regulatory Controls

It is proposed that a permit be required to:

  • manufacture a HFC;
  • import a HFC that is new (virgin), used, recovered, recycled or reclaimed (URRR); and
  • export a HFC.

In addition, those who are granted permits will be required to provide annuals reports on quantities manufactured, imported and exported under the issued permits. 

Annex 2 to this document outlines the draft proposal regarding provisions related to the permitting and reporting provisions for HFCs as well as the list of HFCs subject to these provisions.

2.3 Prohibiting the Import of Refrigerants in Non-refillable Containers

2.3.1 Existing Regulations

No provisions currently exist in the ODSR 1998 that prohibit the import of HCFC or HFC refrigerants in non-refillable containers.

2.3.2 Purpose of Proposed Regulatory Controls

Prohibiting the import and manufacture of HCFCs and the import of HFCs refrigerants in non-refillable containers would help to complement and strengthen provincial/territorial regulations that currently prohibit the sale of refrigerant in non-refillable containers. It can also be expected that this would have a positive effect on the environment as refillable containers are less prone to leaking and would be reused instead of being disposed of (i.e.: in a landfill).

2.3.3 Proposed Regulatory Controls

Controls on refrigerants in non-refillable containers will be proposed to apply to all refrigerants that are substances controlled under the proposed regulations (i.e. HCFCs and HFCs), as it is proposed that both groups of substances be listed in Schedule 1 of the regulations.

Annex 3 to this document outlines the draft proposal regarding provisions related to the use of non-refillable containers that apply to both HCFC and HFC refrigerants.

2.4 New, Used, Recovered, Recycled and Reclaimed HCFCs

There are several provisions in the ODSR 1998 that restrict the import, manufacture, use and sale of HCFCs prior to the phase-out date.  These provisions are found in sections 22 through 30 to the ODSR 1998 and are also found in Annex 4 to this document.

It should be noted that these provisions apply to both new and URRR HCFCs.  Environment Canada will maintain these provisions in the revisions to the ODSR 1998, meaning that, provisions applicable to HCFCs in the aforementioned sections apply to both new and URRR HCFCs (i.e.: URRR HCFCs will be prohibited in 2020, URRR HCFC-123 will be prohibited in 2030).

2.5 Provisions Related to Methyl Bromide

2.5.1 Quarantine and Pre-shipment

In the March 2008 round of consultations, Environment Canada proposed provisions that would require the reporting of the specific use of methyl bromide for quarantine and pre-shipment (QPS) applications (i.e.: type of commodity, country of origin/destination, legislative requirements, etc.). Stakeholders indicated that the additional reporting requirements for QPS applications would be onerous and duplicative as the Canada Food Inspection Agency (CFIA) already oversees and tracks these uses of methyl bromide.  Environment Canada has decided to collaborate with the CFIA to develop a more robust tracking system that would meet both their needs as well as our reporting requirements under the Montreal Protocol; therefore the proposal for additional reporting requirements will not be carried forward.

2.5.2 Transfers

Stakeholders also suggested that Environment Canada should allow for the transfer of methyl bromide gas between exempted uses once the methyl bromide was imported into Canada, which is not currently allowed under the ODSR 1998.  As the need for methyl bromide for quarantine and pre-shipment applications is diminishing, unused quantities are accumulating.  In order to avoid importing additional quantities of methyl bromide, Environment Canada is proposing to allow the transfer of quantities of methyl bromide between quarantine applications, pre-shipment applications, critical uses and emergency uses.  All transfers of the quantities will be required to be reported to Environment Canada in annual reports. 

The proposed revisions to the regulatory text are detailed in Annex 5 to this document.

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